I am using the licon8.bmp that came with PDE and have modified the icon with my app's icon. I have left the background as 255,128,255. The problem is that on my Zodiac and on my PalmOS Emulator, I see the pink background.

I have used Adobe Photoshop, Imageready and MS Paint to set the transparent pixels to 255,128,255 but cannot get the background to become transparent. The strange thing is that if I embed the PDE licon8.bmp in my app, the icon shows up correctly.

Does anyone use Photoshop to create transparent icons? If so, have you encountered this problem?

Never mind. It appears that Photoshop, ImageReady and MS Paint was changing the 255,128,255 color to 255,132,255 when I saved the image. I am using Corel PhotoPaint and have successfully saved the icon with the correct transparent pixels.